The Bureau of Internal Revenue warned on Thursday that sellers of tobacco products at prices below the minimum set by the government will face criminal charges.
This after BIR Commissioner Romeo Lumagui Jr. released new tax updates regulating the floor price of cigarettes, heated tobacco, vaporized nicotine, and non-nicotine products through the issuance of revenue memorandum circular 49-2023 on May 5.
Pursuant to the existing laws, BIR is mandated to prescribe the floor price of cigarettes, heated tobacco, vaporized nicotine and non-nicotine products.
The floor price or the minimum retail price of the said products shall be the sum of production cost or the total landed cost plus the total of excise tax and value-added tax of the tobacco product.
“We have a new minimum price for tobacco products. For cigarettes, P114.60 per pack and P1,146 per ream. For heated tobacco products, P120.40 per pack. For vapor products, a pod of nicotine salt has the minimum price of P200 [2ml] and P354.97 [4ml], while a bottle of conventional freebase has the minimum price of P179.20 [10ml] and P403.20 [30ml],” Lumagui said in a statement.
“Any seller offering below these floor prices is not paying their proper taxes. They are illegal traders. Their warehouses and stores will be raided. The BIR will file criminal cases against these illegal tobacco and vape traders,” Lumagui said.
He said violators shall be charged with the corresponding fine under the pertinent provisions of the National Internal Revenue Code of 1997, as amended.